Industry News

Stay up to date on the latest news in the commercial trucking industry.


Easy Steps To Financing A Semi Truck With Bad Credit

A semi truck is a worthwhile investment that has the potential to bring in lots of income. But how can one even think of purchasing a semi truck when they have bad credit? One thing we must first acknowledge is that the credit climate in the semi truck financing world has gotten very tight. It’s a totally different ball game from what it was before 2009. But there are still four options that truck drivers can use to help lenders look past their credit history and allow them to purchase a truck. Here’s how to finance your semi truck when you have bad credit. Put more money down on the truck you’re buying when you apply for a Commercial Truck Loan. Every dollar you can pay up front brings you that much closer to getting approval from a lender. Besides good credit, lenders like to see equity. More money down means more equity on the truck. Find a co-signer with impeccable credit and a Commercial Driver’s License (CDL). The reason for the CDL is that lenders will no longer accept borrowers to use just anyone as a co-signer. For instance, a grandmother who lives in an assisted living home is not a suitable co-signer. The good news is that a co-signer with a CDL and good credit almost guarantees acceptance from most lenders. Buy from a dealer who carries their own papers. That is, you pay as much of a down payment as you can and then make monthly payments to the dealer in a sort of lease-to-own agreement. Yes, this means that you will have to buy from...

Owner Operator Financing Options When You Have Bad Credit

Bad credit – it’s the iron bars on your gateway for freedom. Bad credit prevents you from opening credit cards, getting a good deal on your mortgage, and more importantly – bad credit prevents you from securing the loans necessary to fund your business. Whether you’re operating an entire fleet or just have your own semi truck that needs substantial repairs, a bad credit rating can completely derail your plans – and your business. Fortunately, there are financing options for owner operators with bad credit. Take Stock of Your Assets If you have bad credit, there’s a chance you may need to put up some collateral in order to secure a loan. That means your first step should be to take stock of any assets you have. Make a list of any property, vehicles, or businesses you own. After you’ve made a list, determine how much money you can pull from each. This will give you a rough idea of how valuable those assets are as collateral in the eyes of a lender. Use Collateral to Secure a Loan Next, you’ll want to meet with someone that specializes in lending to those with bad credit. They’ll know how severe your situation is, and what options are available to help you secure financing for your semi truck or business. They will want to know what sort of collateral you have – as it can be used to secure a more favorable loan. Ideally, you should strive to work with someone who’s familiar with your business, as they’ll have a better understanding of what type of financing you will need in order...

Lease Purchase Vs Owner Operator

Many of us either have our names on a lease or on a mortgage and which one we choose will depend on a number of circumstances and considerations. Owner operator commercial truck drivers have similar factors to consider when deciding whether to purchase or lease their commercial vehicle. A few things to consider when deciding whether to lease or purchase a commercial truck are: How long do you plan to keep the vehicle? What financing options are available for purchasing vs. leasing? What are the tax implications or benefits? Leasing a Commercial Vehicle: Pros and Cons Leasing a commercial vehicle is much like paying monthly rent. The money that is paid on a monthly basis is for the use of commercial vehicle, but no ownership equity is ever realized. The leased vehicle remains the property of the company issuing the lease and they will continue to profit from your use of the vehicle. Rules and restrictions may be assigned to the lease, allowing for less control on behalf of the driver. Leases are typically structured for a set time period, ranging from one to three years and payments are required, without fail, for the complete term of the contract. If, at any point, you decide that you are no longer interested in continuing use of the semi truck, and early termination fee will be assessed and the security deposit will be forfeited. The benefit of leasing is having increased flexibility and less commitment. Leasing commercial vehicles requires less upfront cash and monthly lease payments are usually less than finance payments. When the lease period has expired, the lessee can...

September 2015 Newsletter

XPO to Buy Con-way for $3 Billion XPO Logistics said it has agreed to acquire Con-way Inc. for $3 billion to broaden its supply chain offerings into less-than-truckload and U.S. truckload freight and create a company with annual revenue of $15 billion. Spot Van, Refrigerated Rates Rebound Slightly Spot truckload van and refrigerated freight rates finally recovered a little last week after a period of higher demand and declining fuel surcharges, while flatbeds continued to lose ground, according to DAT Solutions, which operates the DAT network of load boards. Secretary Foxx: Congress ‘Can Achieve a Bipartisan Bill’ (with video)  WASHINGTON – With about a week to go before a House transportation panel takes up a multiyear highway bill, the country’s top transportation officer said the timing is right for both chambers of Congress to finally approve such legislation. TCA Seeks Best Fleets to Drive For Nominations  The Truckload Carriers Association and CarriersEdge are seeking nominations from professional truck drivers for the annual Best Fleets to Drive For contest. How Startups are Using Big Data to Manage the Holiday Cargo Rush  Several startups have sprung up to help manage the complicated flow of data involved with the movement of goods. FHWA Seeking Comment on Truck Size and Weight Study The Federal Highway Administration is seeking comments through Oct. 13 on its June technical report on the agency’s congressionally mandated Comprehensive Truck Size and Weight Limits Study. Dicom Acquires Eastern Connection Private-equity investment firm Wind Point Partners said its Dicom Transportation Group, a business-to-business expedited transportation service based in Montreal, acquired Eastern Connection, a regional overnight parcel business that operates in...

How Much Money Can I Make As An Owner Operator

  Average Per Mile For Independent Truck Drivers Finally being able to buy your own truck and become an owner-operator rather than working for someone else is a dream come true for most people in the transportation industry. However, with being your own boss, setting your own hours and making your own business decisions comes the responsibility for making your business profitable. After all, it you don’t cover your expenses, you don’t get paid yourself. Commercial truck loans Since the price of most semis and other commercial trucks is usually too steep to be able to afford with just one’s savings, most owner-operators will need to take out a semi truck loan to make their dream possible. That brings the added pressure to make enough money each month to be able to make that payment to the commercial truck lender and still have money left over for your other business expenses and for you and your family. Income per mile and your loan payment One of the easiest ways to make sure that you’re earning enough each month to comfortably make that truck loan payment is to compare how much you earn per mile to your loan payment. That way you know can quickly calculate how many miles you’ll need to drive just to have the money for your loan. Of course, different sector of the transportation industry have different average incomes per mile. Below is a brief overview of what owner/operators in different parts of the industry can expect to earn per mile and the average monthly payment for a good truck to work in that sector: Flat...

August 2015 Newsletter

Truck Tonnage Jumps 3.7% in July, Hits Second Best-Level Ever Truck tonnage rose 3.7% last month, rebounding to the second-highest level ever with help from improved retail sales, housing starts and factory output, American Trucking Associations reported. National Diesel Average Dips 0.2¢ in 12th Consecutive Decline The average price of diesel fuel in the United States declined 0.2 cent a gallon to $2.615, the 12th straight weekly decline, the Department of Energy reported Aug. 17. New Nonprofit Pursues Autonomous Collision Avoidance for Trucks The Center for Automated Road Transportation Safety, based in Fort Monmouth, New Jersey, which began operation last month as a nonprofit, said it will focus on the research, development, certification, and commercialization of autonomous collision-avoidance technology for autos, buses, and, especially, trucks. Traffic Deaths Rise 14% for First Half of the Year Traffic deaths increased 14% in the first six months of the year according to data by the National Safety Council, the Associated Press reported. Study Shows Low-Rolling-Resistance Tires Aid Fuel Efficiency, Reduce Cost A new study finds that tires designed with low rolling resistance are a worthwhile investment because they save a significant amount of fuel and cost about the same as tires that are not designed for low rolling resistance. First 2016 F-650/750 Built at Ohio Plant Ford and United Auto Workers officials Wednesday morning drove the symbolic first unit of the new F-650/750 series off the line at its Ohio Assembly Plant near Avon Lake amid cheers that followed congratulatory speeches. Volvo, Mack Offer Pre-Paid Maintenance Plans Volvo and Mack are offering pre-paid preventative maintenance plans as an option for fleets looking...

July 2015 Newsletter

Truck Orders Down Slightly in June North American Class 8 truck orders fell for the fourth straight month in June, to 19,624 units, according to preliminary data from FTR, keeping with seasonal trends. More Bulldog Hiway Express Brought Into Daseke Family of Carriers Bulldog Hiway Express, the company of past American Trucking Associations Chairman Phil Byrd, is merging with the Daseke family of flatbed, open-deck and specialty carriers. More Unemployment Lowest in 7 Years, Manufacturing Eases Economic Watch: The nation’s unemployment rate fell 0.2 of a percent point in June to 5.3%, its lowest rate since April 2008, while 7,400 jobs were added in the for-hire trucking sector. More ATA Names Supply Chain Security and Operations VP American Trucking Associations promoted Boyd Stephenson to vice president of supply chain security and operations. More Designing, Testing Tires for Drop-Deck Trailers Challenging Dropdeck trailers with spread-axle tandems are torture on tires. Tom Berg explores one tire maker’s quest to design a product to stand up to the beating in his Trailer Talk blog. More Security Firm Converts Armored Trucks to RNG PHEVs A Southern California security company is converting its fleet of Class 5 armored vehicles into plug-in hybrids powered by renewable natural gas with the help of two vehicle modifiers. More Great Dane Announces Supplier Summit & Innovation Challenge Great Dane has announced plans for the company’s first Supplier Summit & Innovation Challenge taking place Sept. 28 to 30, 2015 in Savannah, Ga. More Walcott Truckers Jamboree Kicks Off Soon The 36th Annual Walcott Truckers Jamboree will kick off July 9 at the Iowa 80 Truckstop in Walcott, Iowa. More...

June 2015 Newsletter

IN THIS ISSUE: Rep. Peter DeFazio Introduces Grow America Act, House Passes Two-Month Highway Trust Fund Patch; Senate’s Turn to Act, Rural America Needs Road, Bridge Overhaul, Report Says.